The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-08
THE NATIONAL BANKS.

Senator FarweIi's Plan for Securing n New
Basis for Circulation.
WAsHINGToN, Dec. THE following 10 the
full text OF the bill to perpetuate the national
banking system, which will be introduced by
Senator Farwell as soon as the committees are
formed:
Whereas. the rapid redemption Of United States
bonds is endangerng the perpetuity of the national
by title LXII of the Revised Statutes of United
States and the acts amendatory thereof and supple
naen;arY thereto:
Be it enacted etc.. that every national banking
association which has heretofore been organized.
hereafter be organized. under title LXII of tbs
Revised Statutes of the United States. and the
amen6atory thereof and supplemental thereto may,
required by Section 5159 OF the Revised Statutes OF
the United States to be transferred and delivered
the Treasurer of the United States transfer and de-
liver TO the Treasurer of the United States
or n,unicipal bonds or any first mortgage railroad
bonds of the United States upon which interest has
been heretofore promptly paid and whose market or
cash value is equal to or greater than their par
value, bearing interest at rate of not
And all of the provisions of said title and acts amend
atory thereof and supplemental thereto shall be ap
plicabe far may be- to the bonds herein provd-
ed for, in the manner to United States regis
tered bonds provided that the Treasurer of Unted
States shall receive such State municipal bonds
at more than 70 per cent. of their par value, nor
rstrnortgage railroad bonds exceeding in total
more than the amount of $500, 600 OOG shall he
value provided further. that the Treasurer Of the
United States snail not receive such State municipal
and irst-mortgags railroad bonds until such bonds
shall have ndorsed upon them the approval Of tho
Secretary of the Treasury and the Comptroller Of the
Currency.
Sec. 2. That whenever any association shall have
deposited with the Treasurer of the United States
such bonds authorized oy this circulation
be issued thereon only in the proportion which
they authorized by this be received By the
Treasurer of the United States.
Sec. 3. That whenever any association shall ha-s
deposited bonds of the kind authorized by this
basis Of circulation the Secretary of the Tielsu
may have plates and dies engraved and circulation
notes printed, in accordance with Section
United States, except that such notes
shall no purport TO be secured by United States
bonds but shall express their face that they
secured by collateral bonds deposited with the Treas
urer of the United States Provided, that whenever
any association in existence at the time of the
proval of this act, to whom circulation shall have
been issued shall desire deposit the bonds author
lied by this in lieu of United States bonds pre-
viousy deposited the Secretary of the Treasury shall
of making such change including the cost of making
and engraving the plates and dies aforesaid.
Sec. A. That Section $3.50 of the Revised Statutes
of the United States be amended and reenacted
read follows: Whenever the Comptroller ha.
become satisfied by the protest the waiver and ad
Statutes of the United States by the report pro-
ved for in Section 1927 of the Revised Statutes of
the United States that association has refused to
its circulating notes he instead of canceng
it's bonds. much of them may be necessary
to redeem it's outstanding notes be sold at public
auction in the city of New York after giving thirty
days notice of such sale to the association he may
in his discretio proceed in the of the United
States of America in the Circuit Court of ths
United States, to collect such bonds fast as they
shall mature. For deficiency in the proceeds of
all bonds of association. when thus sold col
lected. to reimburse the United States the amount
expended in paying the circulating of the
citation, tie United States shall have paramount
lien upon all its assets and such deficiency shall be
other claims Whatsoever except the necessary costs
and expenses of administering the same